Judge Sets Auction Date For KDHX Sale

A federal bankruptcy judge has set May 30 for a public Zoom auction for the broadcast license and tower of KDHX/St. Louis. The decision follows internal disputes and a March bankruptcy filing. The legal and financial battle over the station’s future intensifies as the original bidder, K-LOVE, is now seeking compensation for its early involvement.

Double Helix Corporation, owners of KDHX,  filed for Chapter 11 bankruptcy with around $2 million in debt. Educational Media Foundation (EMF) offered to buy the station for $4.35 million, with increased pricing if the deal closes quickly—$4.85 million within six months or $4.6 million within a year. EMF also agreed to provide financial support during the bankruptcy to keep KDHX operational. Double Helix has used $127,000 of a loan from K-LOVE according to its attorney.

In December Double Helix and St. Louis-based Christian radio group Gateway Creative Broadcasting Inc. had agreed to a $5.5 million transaction for KDHX.

Weeks after EMF’s initial offer in, U.S. Bankruptcy Judge Kathy A. Surratt-States temporarily paused the sale.

A group of KDHX supporters has yet to submit a proposal to acquire the station, although they originally proposed to do so.

Under court-approved bidding rules, any successful buyer must reimburse EMF up to $300,000 for expenses and pay a $152,000 break-up fee, as EMF is the “stalking horse” bidder. Both Gateway Creative Broadcasting and the advocacy group LOVE of KDHX objected to these added costs.

A hearing to approve the sale is scheduled for June 9.